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Self employed and Coronavirus and UC
We are seeing people who are losing business due to Coronavirus ie self employed cleaners where offices are closing so don’t need cleaning. Do changes to MIF apply or is it only if self employed person is self isolating or infected?
The legal changes only apply to someone ill or self-isolating, not who’s businesses have been affected.
Having said that, we are hearing stories of the MIF not being applied at the moment, but thats really just up to the work coach. When I’m doing benefit checks, I quote both figures to people and explain to them what the MIF is and that its imposition is up to the work coach.
Its one of the things national Citizens Advice are calling on the Govt to change: https://www.citizensadvice.org.uk/Global/CitizensAdvice/welfare%20publications/Citizens%20Advice%20briefing%20-%20Covid-19%20pandemic%20(1).pdf
New package being announced suspends MIF completely. See https://www.rightsnet.org.uk/forums/viewthread/15760/
This might be stupid, but the means test is still going to apply right?
I mean, for example an employee with 30k savings could stop work and either receive full pay, 80% pay or SSP with no means testing. However a self employed person in the same boat with 30k will be means tested under UC?
This might be stupid, but the means test is still going to apply right?
I mean, for example an employee with 30k savings could stop work and either receive full pay, 80% pay or SSP with no means testing. However a self employed person in the same boat with 30k will be means tested under UC?
Unfortunately, you are correct. Universal Credit is still means tested.
This might be stupid, but the means test is still going to apply right?
I mean, for example an employee with 30k savings could stop work and either receive full pay, 80% pay or SSP with no means testing. However a self employed person in the same boat with 30k will be means tested under UC?
Unfortunately, you are correct. Universal Credit is still means tested.
Many thanks, as I thought.
News from Gov UK of increase to Working Tax Credit from 6 April
https://www.gov.uk/government/news/increase-to-working-tax-credits-what-this-means
Will this mean claim for UC avoided for at least some people - hope so…
I don’t understand this Coronavirus Bill and s/e people. The draft Ive seen is here https://publications.parliament.uk/pa/bills/cbill/58-01/0122/amend/coronavirus_daily_cwh_0320rev.14-18.html?fbclid=IwAR13QIhA3FUor-cMv3ryuwfsNCYzXsAv0hCrtSg40IWjq9qnGJY1U36qggM
But the Coronavirus Job Retention Scheme is not compulsory so s/e would be in a much better position than workers who can only get the 80% if their employer chooses to join the scheme.
Or perhaps I’m missing something.
this help for self-employed shouldn’t be means tested unless they make a claim for UC.? As with the employees package, wouldn’t it work as a kind of tax rebate - with the government using the HMRC records to pay the 80% rate. But what about self-employed who don’t have a three year history? It sounds at present as if nothing is available for them.
What’s the status of people who are IR35?
New package being announced suspends MIF completely. See https://www.rightsnet.org.uk/forums/viewthread/15760/
Contrary to what I thought when I posted that based on the headline announcement it appears that Abi was right when she said
The legal changes only apply to someone ill or self-isolating, not who’s businesses have been affected.
The new Memo ADM 02/20 says the MIF is suspended if the claimant is treated as having LCW as a result of being affected by coronavirus. Being affected by coronavirus dos not include loss of income or business as a result of economic disruption caused by coronavirus. My reading of this is that any healthy self employed person who has not been advised to isolate is still subject to the MIF even if they have no earnings.
Lets hope this is a case of the DWP not yet having caught up with the intention of the chancellor.
Lets hope this is a case of the DWP not yet having caught up with the intention of the chancellor.
I’m pretty certain this is the case. To be honest, the current legal position is as stated in the ADM, as they haven’t legislated yet for the more recent changes.
Lets hope this is a case of the DWP not yet having caught up with the intention of the chancellor.
I’m pretty certain this is the case. To be honest, the current legal position is as stated in the ADM, as they haven’t legislated yet for the more recent changes.
Fingers crossed. Certainly in his speech on 20th March Rishi Sunak said “I’m strengthening the safety net for self-employed people too, by suspending the minimum income floor for everyone affected by the ECONOMIC impacts of coronavirus.”
It’s clear the current bill to which the Memo refers doesn’t do this.